You have a son or daughter who just got their driver’s license and can’t wait to get behind the wheel. But before you can hand over the keys, it’s important to answer a crucial question: How much does it cost to add a teenager to car insurance?
- Requirements and Laws for California Car Insurance – ValuePenguin
- Auto Insurance Requirements in New Jersey – ValuePenguin
- Claims Adjusters, Appraisers, Examiners, and Investigators : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics
- NFT Investments Keep Coming After Bubble Pops | PYMNTS.com
- The truth about &039totaled&039 cars: How to keep yours
The average cost to add a teen between the ages of 16 and 19 to your policy is $3,798, according to auto insurance from 2022. com rate analysis.
What you actually pay depends on a number of factors, but you’ll pay higher premiums once you add your teen to your auto insurance policy. In fact, the cost of adding a teen to your auto insurance policy can increase your rate by 50% to 100%, according to the Insurance Information Institute.
The good news is that once you establish a good driving record, you can expect your premiums to drop as you reach your 20s.
Here’s what you need to know about the cost of adding a teen to your car insurance and use our calculator below to get teen car insurance quotes.
how much does it cost to add a teenager to your auto insurance policy?
If you add a teenager to your auto insurance policy, you can expect to pay an average annual rate of $4,144 with a 16 year old, $3,985 for a > 17 years old, $3,718 for an 18 year old and $3,343 for a 19 year old, according to carinsurance.com data from 2022.
“Teen drivers are inexperienced drivers who are less aware of their surroundings and tend to drive too fast and less responsibly, making them more likely to have a claim,” says ben galbreath, producer and agent independent insurance. with wallace & turner insurance in springfield, ohio.
Below, you’ll see the average cost of adding teen driver cost for comprehensive coverage in each state:
Parents can save money by adding teens to their own policies. carinsurance.com guides cover everything you need to know about insuring a teen and viewing rates on her state:
- 16 years old
- 17 years old
- 18 years old
- 19 years old
- 20 years old
- all licensed drivers in a household must be added to one policy. otherwise, your insurer may not cover an accident or other claim.
- Some states allow auto insurance companies to require you to include teens with driver’s licenses, even those who are not yet licensed, on your insurance policy: illinois, indiana, maryland, new york, north carolina , ohio, pennsylvania, virginia, and west virginia.
- Most states will not allow teens under the age of majority (when states give teens the rights and responsibilities of an adult) to title a car in their name.
- Even if your state doesn’t have age restrictions on car ownership, teen drivers under the age of 18 are unlikely to find insurance on their own. it’s a contract, and teens aren’t old enough to sign one. that means you’d also have to sign the teen liability insurance policy if your child is under 18.
Does it cost more to add a teenage male driver than a female?
teenage male drivers generally cost more to insure than female drivers. why? The average cost to add a teen to your auto insurance policy comes down to risk.
katie sopko, agent/manager at insurance agency with insurance plus in greenville, south carolina, says statistics show that male motorists cause about 6.1 million accidents per year versus 4.4 million per year caused by women.
“Women are, simply put, more careful drivers than men, on average,” Sopko says.
How can you get a good deal on teen car insurance?
carinsurance.com’s parent’s guide to best insuring a teen provides more detail, but here are the best tips for getting the lowest rates for teen drivers.
check when you get insurance for a teen
The more you pay for insurance, the more likely you are to save money. Insurance companies price your insurance coverage differently, and what might be cheaper for your neighbor might not be for you. It’s a good idea to check other auto insurance companies’ quotes when adding a teen driver to your policy.
buy the right car for your teenager
The best cars for teens are those with underpowered safety features. If the vehicle your teen drives is old enough to get by on liability insurance alone, that will also lower your insurance costs.
“Consider purchasing an older vehicle model for your team to drive. A sedan is usually better at lowering your costs compared to a sports car or SUV,” Galbreath says. “I recommend covering the teen for liability only until he is in his early 20s, which is the age when coverage rates tend to drop.”
Do I have to add my teenager to my car insurance?
State laws vary, so be sure to notify your auto insurance company that you have a young driver, but there are some general guidelines:
Learn more about how long you are considered a new driver.
what discounts are available for teen drivers?
You can save big on your car insurance premiums if you qualify for specific discounts. Fortunately, most companies offer a variety of discounts to policyholders with teen drivers, including the following.
good discount for students
Statistics show that student drivers who maintain better grades are less likely to make mistakes behind the wheel. If your child maintains a good grade point average, many insurance companies offer a good student discount, averaging around 10% to 15%.
See also : How is home insurance calculated?
“If your child is currently in college or taking college classes, most companies will offer a student discount. And if your child took a defensive course before getting their license, most companies will offer a discount for this as well,” Sopko says.
low mileage discount
The more time a teen spends driving a vehicle, the greater their chances of being involved in a car accident or traffic violation. that’s why teens who drive a low number of miles per year may qualify for a discount.
Insurance providers often offer telematics programs, which reward safe driving practices with a discount based on a driving score determined by a smartphone app if your insurer offers one.
discount for students
Young adult drivers who live on campus or attend school in another state and leave their car parked at the family home may be eligible for a distant student discount, says Justin Yoshizawa, director of product management at mercury insurance in brea, california.
“many insurers offer discounts for students who live 100 miles away or more. Combined with a nice student discount, this could provide substantial savings for families when it comes to car insurance,” she says.
how do you decide which vehicles to attach to your teen?
Take the time to carefully consider which vehicle your teen should drive and which vehicles are prohibited. but keep in mind that most auto insurance policies will allow the teen to drive any car in the household.
“The newest cars come with the latest and most sophisticated safety technology to keep your teen safe behind the wheel,” says yoshizawa. “But used cars that are well-maintained and in good working order will continue to offer standard safety equipment and be a cost-effective way for many families to get their teens on the road.”
FAQ: Cost of adding a teen to your car insurance
Final Thoughts: Cost of Car Insurance for Teens
Adding a teen to your car insurance will increase your cost, but there are a few things you can do to make it less of a pain: shop around, ask about discounts, and teach your teen good driving habits.
resources & methodology
insurance information institute. “students.” accessed August 2022.
carinsurance.com commissioned Quadrant Information Services to run auto insurance rates for a 2022 Honda Accord LX at various levels of coverage for a driver with a clean driving record in all zip codes in each state.